Econ: Exchange Rates

Front

What might cause the value of the U.S. dollar to appreciate in relationship to the euro? Options: Increased demand for European products in the U.S., Increased demand for U.S. products in Europe., Increases in the U.S. money supply, High rates of inflation in the U.S.

Back

Increased demand for U.S. products in Europe.

Front

One advantage of a weak dollar is that… ?

Back

American exports increase.

Front

What must first take place in order for one country to trade with another?

Back

Exchange currency for the currency accepted by the trading country.

Front

What is an exchange rate?

Back

The price of one nation's currency in terms of another's.

Front

Why do changing exchange rates help one country and hurt the other?

Back

One side loses purchasing power and the other gains it

Front

What does it mean when an economist says a currency is stronger?

Back

It can be exchanged for more of a lesser foreign currency

Front

What is a decrease in the value of a currency?

Back

Depreciation

Front

If the US dollar is weak, will our exports increase or decrease?

Back

Increase

Front

What is the value of a nations currency in relation to a foreign country?

Back

Exchange Rate

Front

The producer that can produce the most output OR requires the least amount of inputs (resources)

Back

Absolute Advantage